Gruffalogill

I noticed that different states have different rates of sales tax and even within those states the rate can differ. My question is simple - is there anything to stop me buying from a neighbouring state/county with a lower sales tax - or will they look at my address and charge me appropriately?

We're looking at moving this summer and obviously there will be several thousand dollars of electrical expenditure alone so every % saved will be helpful

AdobePinon

Not usually. There are some states that expect you to pay them sales tax when you buy stuff elsewhere, but I'd be surprised if anyone does it. The major exceptions are vehicles, where you'll often have to pay sales tax to register them.

Similarly, when you buy from the internet, if the seller does not have a physical presence in your state, you don't have to pay tax to the seller (but the state might expect you to pay them directly). Several states are trying to modify this, such as California and Colorado.

The Horticulturalist

I'd concurr with Adobe.

I often buy electrical goods online because the savings on paying no sales tax can be substantial. If you reside in the same state as the online retailer then I think you'd need to pay the tax, the small print on the website usually tells you what states they charge tax to, if any.

Nothing to stop you crossing state lines and buying there, but you'd still have to pay the applicable sales tax in your neighbouring state.

celticgrid

It is getting less simple. For instance:

And in the state tax return for NY they ask you to declare all those purchases you made throughout the year that didn't include state tax. Of course, for my 2009 tax return I racked my brains but couldn't recall any such purchases.

Englishtart

We have often bought stuff from MO to get a better bargain, never had an issue with paying the sales tax (on MO bought stuff) here in IL.

md95065

Welcome to the USA ...

As you have noticed, every state is different.

Your question is simple but the answer is not - partly because there isn't just one answer - it depends on which pair of states you are talking about (hence over 1000 possible combinations) and what it is that you are buying.

There are also at least two parts to the question - will the merchant that you buy the item from collect sales tax from you and are you required to pay salse / use tax on the item in your home state.

The Horticulturalist

So when you get to the till (in MO) do they ask you where you live, or do you volunteer that info?

I go to Alabama for Target and they've never asked and I never thought to say anything about sales tax, so I've just paid it. I don't know if it makes any difference or not that I live in MS.

Englishtart

No, never been asked that question, I know my neighbor goes to MO all the time for appliances, not sure if they would have any issues with the tax, the delivery is made to IL.


So, because we just bought a car in IL, will we have to pay sales tax or anything when we register it in SC?

The Horticulturalist

Ah, well, I've never bought things and had them delivered like that, maybe then it would be different. I've just gone shopping in the stores and they added the tax at the till.

I don't know how it works with your car purchase and moving to another state.

chrisfromusa

What I have noted, might not be applicable to all states, but at least some or most of them, require you to pay sales tax for your new state if you have owned your under the specified amount of time. Like for example some states say you have to pay sales tax to register your car if you have owned the car for less than 90 days. That's just an example. Each state's DMV website has that info.

Englishtart

Cheers Chris, I better check that out, we are hoping to be in SC by first week of June, so that may affect us

chrisfromusa

I looked into their site to see if I can find something of use to you I didn't, except that the county you move in collects the vehicle tax upon registration, and I don't know if there are exemptions to paying the tax, i.e. length of vehicle ownership. Might want to give the county office you are moving to a call to clarify.

Gruffalogill

Thanks for the replies. We hope to be moving to NY state and I noticed that in CT the sales tax was 2-2.5% lower. It's only really electrical goods that I'm thinking of as we intend to lease a car - which I understand won't incur sales tax?

Nutmegger

Many years ago I bought a car in NYS and paid the relevant sales tax and registered the car in NY city. A few days later, we found a house we wanted in CT and a couple of months later closed and moved in. We then had to transfer the cars to CT registration. Well, I had a correspondence that lasted months with the CT DMV, who were convinced that I had bought the car in NY just before the move to evade paying CT sales tax. It took forever to get through to them that this wouldn't have been a very bright idea, as the NYS tax was higher than I would have paid in CT!

celticgrid

The variation in sales tax will depend on exactly where in NY state you compare with - some counties/cities vary by as much as 1.75% so the savings may be minimal.

If you can avoid sales tax on a car lease in NY state - good luck to you. I'm not sure of the situation regarding leasing but will be utterly gobsmacked if NY state do not take the opportunity to tax it. This is one state that doesn't shy away from money-making opportunities. Hope you are right, but would bet that you aren't. Sorry